CHRIS UHLMANN, PRESENTER: Money now versus money later - that's the argument swirling around Canberra over the Government's unexpected move to put a freeze on increasing compulsory superannuation for seven years. It was the trade-off for doing a deal with the Palmer United Party to scrap the mining tax.

But will workers be better or worse off? Like so many questions in politics, it depends on who you ask.

Political correspondent Sabra Lane reports.

SABRA LANE, REPORTER: As the Prime Minister marked National Flag Day, the ramifications of the Government's deal with Clive Palmer to pass the mining tax continued to ripple across the nation.

TONY ABBOTT, PRIME MINISTER: As Australians, we are proud to say that we were born under this flag, have fought under this flag, have cheered for this flag and many of us wish to be buried under this flag.

SABRA LANE: The Opposition Leader argues what the Government's done is against the national interest.

BILL SHORTEN, OPPOSITION LEADER: He said it 14 occasions to the Australian people - 14 occasions! - he said there would be, "no adverse changes to superannuation". Then this arrogant fellow says, "Well, it's not that adverse." Yes, it is, Tony Abbott.

SABRA LANE: To secure a deal with the Senate crossbench to pass the mining tax repeal, the Government decided to pause the compulsory superannuation guarantee at its current level of 9.5 per cent until 2021. From then, it'll increase on a yearly basis by half a per cent, reaching 12 per cent by 2025.

The Coalition had promised at the election to freeze the guarantee for two years. The policy change now means it's on hold for seven years, and the Opposition argues it's a broken promise.

BILL SHORTEN: I believe that this decision is the stupidest, most short-term decision I have seen this government make, which will have generational impact.

TONY ABBOTT: Well, Madame Speaker, I can confirm in response to the Leader of the Opposition that money that would otherwise be squirreled away in superannuation funds will instead, will instead be in the pockets of workers.

SABRA LANE: Industry Super Australia has done the sums on the impact: for a 35-year-old earning an average wage, the decision will cost them more than $26,000 in retirement savings. For a 25-year-old earning $50,000 a year, it'll cost them $23,000.

DAVID WHITELEY, INDUSTRY SUPER AUSTRALIA: These changes send very mixed messages to the Australian public. On the one hand, we want people to be increasingly self-reliant in their retirement, but on the other hand, we are slowing down the rate in which people will save.

SABRA LANE: The Financial Services Council claims the entire national superannuation pool will be $128 billion lower as a result. The Treasurer dismisses that as ridiculous and cites a two-year-old Bill Shorten quote to bolster his case.

JOE HOCKEY, TREASURER: $128 billion super I completely reject because they're getting it in their pockets. They're getting that money in their pockets if you use the formula that Bill Shorten laid down that if it's not going into super, it's going into a worker's pocket.

SABRA LANE: Workers could salary-sacrifice the money and invest it in super:

JOHN FREEBAIRN, ECONOMICS, UNI. OF MELBOURNE: Or they could pay their mortgages off a little bit quicker, or they could even buy some shares. So that would give them roughly the same mix of spending today and putting money away for retirement in the future. Or they could say, "Whipee, I've got some more money, I'll buy another couple beers or a few more ice-creams for the kids and we'll got for a better holiday." Now what we know in history is about a third of them will probably just change the composition of their saving, but the majority of people will spend it on current consumption.

SABRA LANE: Economics Professor John Freebairn says both major political parties are guilty of flip-flopping on super. He says current retirement policy, including pensions, is a mess, that a bipartisan approach is needed, with changes locked in for 10 years at a time, and he laments how current policy is being decided.

JOHN FREEBAIRN: What compromise we get tomorrow depends on who drank which wine or which coffee last night and how they woke up.

DAVID WHITELEY: What we've seen in the last 24 hours cannot be described as considered policy-making and it certainly can't be considered as a consultative approach. We have consistently said to both sides of politics, whether Labor or Coalition, we need stability policy making, we need thoughtful, considered decision making.

SABRA LANE: For all the Opposition's anger about the super pause, Mr Shorten wouldn't give a commitment to reversing it if Labor wins the next election.

BILL SHORTEN: We're not going to unveil our election policies now merely because Joe Hockey and Tony Abbott have no policies except to lie to Australians.

TONY ABBOTT: Will the Leader of the Opposition stand up in this place today and guarantee to bring them back? Because, Madame Speaker, Madame Speaker, if he's not prepared to stand up and guarantee that they will be brought back, he is simply a fraud, Madame Speaker, he is simply a fraud.

SABRA LANE: The mining tax repeal deal means the Abbott Government can notch up delivering another of its election promises as it approaches its first anniversary this Sunday. The Prime Minister told Coalition MPs this week, while the first year hadn't all been plain sailing, they could be, "quietly proud of what they'd achieved". On the Senate, Mr Abbott says while the Coalition can't control it, it will be patient and courteous. Given PUP senators have shown they can be wooed into supporting Coalition bills, the Government's hopeful other agreements can be nutted out, yet PUP senators are sounding consistently inconsistent on that.

DIO WANG, PUP SENATOR: There are things on the table. I can't tell you right now. Excuse me, guys.

JACQUI LAMBIE, PUP SENATOR: Yeah, we won't be moving on the fuel and we won't be moving on the GP tax. They won't be getting an inch in that department, I can tell you now and the same with the education reforms.

SABRA LANE: One could say, given the senator took the ice-bucket challenge last night, that declaration's as good as a bucket of cold water for the Government.